Good. We'll do it. Let's do it. Let's do it live. Well, welcome. I'm glad you're all here today. My name is John Hall. I'm a vice chairman of investment banking, and I've been a fintech banker for a long time. Very pleased today to have Yair Nechmad with us today. He's the CEO and co-founder of Nayax. As many of you know, Nayax is a global commerce enablement payments platform for merchants globally with what I say is, like you say, a focus on unattended retail. That's your roots, right? Correct. Company is headquartered in Israel, listed in Israel in May of 21, dual listed on the Nasdaq last year, last September. Before we jump into our conversation here, I just wanna congratulate you and the team on a spectacular first quarter. You guys grew revenue over 50%, and you've guided a positive adjusted EBITDA for the full year based on growth and better expense management. Congratulations. A lot to be excited about. Yeah, thank you for having me. Yeah, it was a great quarter. Still we are ninth quarter of a public company, and we are performing quite well. Yeah, well. Talk to me about the vision. When you started the company, what were you trying to do? Where are you on that path, that journey today, and where will you continue to go going forward? We started the business in 2005, and we looked at the business of unattended business, retail. It's a big challenge and problem for them to go cashless. We saw the problem in terms of operation excellence, in terms of the payment side, acceptance of payment, and delivering a solution that will be ease of doing business from thYair perspective. The idea of a one-stop shop, this was the strategy that we came into with the hardware, software, connectivity, billing, mobile app, all of the above. you differentiate from what the rest of the market. This is a big differentiator of other players that play as vendors, and we play as a solution. That's the big differentiator that take us for this long ride from 2005. Give an example when you say somebody acts as a vendor versus you providing a solution, just so the audience can understand that. What we're coming is a full solution. I'm always saying that just sign a contract with the customers, we'll deal with everything in terms of the hardware itself. The way that they install this without us being out of the office is it's like 10 minutes to install the unit. It's fully connected to the bank. We have more than 45 acquiring bank that we are connected with and 45 alternative payments that we're connected with. It's like a global local solution, more than 70 countries. All of this is routing transaction and data to our data centers based in three locations around the globe, in Israel, in Germany, and the US. It's a full redundant mission-critical business that we're dealing with. This quarter, we are running on a rate of $150 million transaction a month. That means that we end up the yield potentially of around $2 billion transaction. We're one of the largest in the world in terms of transaction base as a payment facilitators. We have a license for payment facilitating. We're dealing with all the aspects of we call it the friction, taking out the friction from the customer point of view, let him have his business do his business, increase sales and reduce operation. talk about your target customers and how that's evolved over time, right? historically, you were focused on unattended, but you're broadening your scope. you could talk a little bit about that and how that's proceeding. Yes. With that, actually, just the context of unattended business on a global level, most of them are part-time business. They're working part-time of thYair life in terms of the unattended. They hold 10-50 machines. With our strategy, we enable them to do this. When we're looking at the global, we're seeing around 44 million-50 million machines with more than 1 million customers like this, and we are running around 50,000 customers today. There is a long run on these aspects. Extending this on the full retail and EV and other segments is quite similar because they have the same friction, they have the same problem. The vendors are coming with the hardware potentially or processing potentially, but coming all together in one-stop shop, it's kind of a significant change from most of the SMB market. On a global level, we are running quite fast on this strategy. I mean, unattended is the majority of your business today. You obviously have now got capabilities more broadly into physical point-of-sale, retail, EV, you've got a whole bunch of. Talk about how much revenue those solutions are generating at this point. I assume fairly limited. Yeah, it is, it is limited because the way that we're thinking. We established the company, three partners, two of us work in the company, David and myself. We're looking always long terms, and we're looking 10 years ahead, trying to see what will be the outcome of how we will grow the business and be dominating what we're doing in the business. The unattended is a significant part, more than 85%-90% of our business. 10% of the business is all the what you call growth engines. Growth engines will become live more to 2024, 2025, and onwards, and they will be part of what you call the vision that we have a $1 billion revenue company in 2028. Potentially, this will be around 30-40% of our business will be the growth engines. This is how we are looking to bring ourself into continuous growth, 35% year-over-year. That's what we stated to investors, and looking into a 50% growth, gross margin and 30% adjusted EBITDA to 2028. Based of all of these activities that we have in unattended, which is now 90%, but it will be potentially around. When you say 10-year, looking 10 years out, what else do you have on your radar screen that maybe is not even in production yet? Most of it is what we know today. We have a very broad solution on retail. When you look at the retail market, which is $ trillions, we believe in the 70 countries that we're already operating and extending this country's footprint with our solution, we can create a very long run of growth to the company. In terms of what we have in our hands today is retail, the EV, data-driven business of POS solution and food court activity. All of this is touching base, I think, to what we believe will be for the next three to four years as the growth engine. The EV is one of the key element that we're looking very strongly, and we built a company around this business to capture the market, which is a quite complex market in terms of managing energy. It's a DC and AC chargers, and you have to really manage this. Who do you view as competition in the EV space? I mean, people are coming at it from different directions. Do you have a sense? It is so chaotic today because the U.S. market is different because of the utility involvement. The European market is different in terms of because there is much more entrepreneur. D.C. market is catching up in terms of what you call the on the roads locations. We believe that the AC market will be very significant market because of the complexity to have the energy on the multi-tenant location and to manage all the policy behind this regard. It's like a Netflix subscriptions. Yeah. This is like taking us to the B2B2C and putting this as a platform to a charge point operator. This is kind of what you call the out of the box solution. You do B2B and B2B2C is what you. We try to serve only the B2B, but we always from the starting, even in the unattended business, we always provided what you call a mobile app. It's actually creating a C-level that we are serving, but we are not really. Direct. Directly. Correct. All the business of Nayax, which is unique, is the B2B2C, and all of this is a heavy task or heavy lifting that need to be dealt. The EV, coming back to this point, is gonna be a very heavy task because you have the utility, you have the subscriptions, you have to manage the energy behind this, you have to manage consumers, and then you have to manage what you call the unforeseen cars that's coming with a different kind of protocol or different kind of charging policy. All of this is something that we are excited to deal with because we know that when we come into this level of complexity and we're solving the problem, it's created a lot of moat. Right. Comparative advantage ...that are supporting us into this. Let's go back to physical retail point of sale. There's obviously large global acquirers, merchant services providers. There's a whole industry there. You're really, in many ways, trying to disrupt that. How do you see yourself disrupting? It is depend on the size of the customers and the location. The SMB, we believe that we can keep on going, what you call a one-stop solution. It's extending the unattended. We have also our customer base that needs also solution for retail. For example, the FEC, the food court, entertainment centers, they need also a solution of what you call attended or kiosk. This is kind of a thing that we're extending. We're going up the ladder to the mid-size customers and the big customers, we are acting in a way that we are cooperating with acquirers or cooperating with some kind of a channel to go to the market because we are using thYair customer base or thYair sales business to really to create value for them and for us and for the customer, of course, by putting what you call a partnership behind it. We're looking at a partnership with the, with the acquirers that can go to the market with Nayax, which is ease of doing business for them and for the customer. It's not- It's a channel, partner channels. The channel partnership will be very dominating into the future because we're coming with, we believe, a broader solution for them in order to sell the product and to really to maintain the acquiring part or the services. Would you partner with the FDCs and the Worldpays? Yes. Yes. Okay. That's right. Is that basically in the middle market and enterprise segments and then? If we go up the ladder, yes, the mid-size and the tier one customers, that's the thing that they need. We come in with an extra value beyond all of this because we can deal with the unattended outside of the premises, whether it is EV or opening a door or opening the toilet or opening or self-service or self-checkout in the store and then the attended. In a broader solution, we're coming to, let's say, to a food court in much more a relevant way to partner with an acquirer and to serve the location. Potentially also pay on the pump, which is the same thing from our perspective. We can take it, what you call 360 degrees of solution with a partner, and we know that in this case, potentially our PF, what you call solution will not be the one that they serve. It will be partly the acquirer that will do this. Okay. Interesting. Let me ask a different question, but it goes with the conversation we're having right now, which is: What do you think investors don't understand or underappreciate about the company? I think for investor, I try to think it, a lot around this kind of question that we are newcomers to the investing community. I think the model that what we having is so unique in the way that we are performing this in the last 18 years, that it's not always been realized quite obviously. I said the following, okay? We are growing in a pace of 5,000 customers a quarter, so around 20,000 customers a year. We double ourselves from 2021 to 2023. We're doubling ourselves. We keep on saying that we're gonna double ourselves. What make us such assured that this is what we're gonna do? I think the model of the visibility of what we see in the future is quite strong. Why? We have our own customers that actually it's a strategy of land and expand. We coming to the customers or he's coming to us under the all the channels that we're covering and accepting the customers onboarding him. Basically, he's starting with 5 machine or 10 machine or whatever it is, but the size of the customer is around 50 machine. The cohort that we see along the years is always at around when he's starting until, let's say, 4 or 5 years, it's like 3 or 4 times the size of the- You go in with limited penetration. Yes. continue to scale. That's kind of thing that the investor has to realize why we can see that, you know, there... Everybody was talking about recession, everybody was talking about COVID, everybody was. Of course, feeling this. There was a 2008 crisis, and there is so many crises around the globe. If you look backwards about NICE is always growing quite a straight line of a line. The reason for this is because we have a customer base, very, very low churn, very high net retention, and this kind of land and expand- Expand. is really making the difference. You don't think investors understand that, the strength? They're not really. I'm not so sure that they're getting this in the first time. Usually what we're trying to, in order to cope with this, we're saying to all the investors, "Please come to our office in Herzliya in Israel. We'll tour you around, we'll show you what we're doing," and you'll feel that actually it's a really one-stop solution. Then you can see the numbers and how we're growing. You know, there is a. We are actually a company internally, which is a number. Everything is under the, what do you call it? The financial numbers. Mm. People can see all the numbers all the time around what we're doing. Do you publish your cohort data? Yeah, the cohort data is published. Yes. I should know that, but. It's part of the presentation that we're giving to the investors. Yes. you think that's the primary- I think if this has been realized, so to say, actually it's like one of the analysts told us, "Actually you're like a bond with the growth." This is like a kind of what you call we are-. Intrinsic to who you are. Yes. Which is a good placement. Let's talk a little bit about products and platform, and we've kind of been alluding to it. My sense as an outsider is that innovation has been one of your differentiators. It's one of the things that is kind of who you are. You're constantly rethinking, re-envisioning that these products and services adding value to clients. Do you agree with that, or do you think that's an overstatement? I think the way that we're looking at everything that we're doing is basically on the vision statement and the thing that we try to create value for our customers. Based off this, with a strategy of one-stop solution, we come in with the products that are relevant for the customers to create value that are helping them to grow the business and reduce the costs. If you're listening to the customer based on the vision that you're trying to bring in, it's a full solution that we have a lot of products in between that eliminating friction or helping customers to really to scale up with our business. I see a solution as one big thing that Nayax bring in, and based off this is a lot of what you call parts that put... that supporting the customers to grow. We don't have a picture here, unfortunately, but maybe you could quickly describe the platform and the elements of the platform. Because some of these businesses are obviously value-added services and extending the scope and the, you know, potential ARPU per customer. Maybe you could just kind of describe this visually if you can. As visual as I can from point of view of customer, they see, he's reaching out to the whole element of a hardware solution that has a front screen engagement ability. He can place his brand, or he can place QR, he can place whatever he want to or promotion, or accepting any kind of a prepaid solution that he wants to onboard for the employees that he is serving. This is the front end, of course there is all the certification behind his hardware. The back end is a IoT device. Actually, all the connection with the machines, we're doing this automatically, seamlessly for the customer point of view. He's choosing the machine side type, and then it download parameters. The 10 minutes of installation is one of the key element that create a value through our platform. Then on the back-end side, he has all the solution regarding 2 elements of reporting and action. We can take any action regarding what is the machine reporting, regarding which machine to reach out with the inventory level or whether it is routing or it, what it is any kind of what you call dispatching to his employees, and of course, all the reporting about the sales and the alert. All of this is on the PC and also on the mobile side. On top of it, for his consumers, customers, consumers, which is the consumers that are using the machine, he has a platform of a mobile app. He can white label the mobile app. He's getting a mobile app, consumer engagement, a full certification and commitment of the hardware connecting to IoT. It's a outdoor unit, you can place the machine outside in the any kind of heat or cold location. The back end or the whole operation side is having a full control of his business. He feel, to my understanding what we know about customers' reaction, that he is in full control. At last, now he has a consumer visibility, and he has a full operational control that he didn't have before. That's what we are providing as a platform. On top of it, the part of the platform that we are payment facilitators, so we're accepting the money on behalf of the customers, and we are sending a payout to the customers on a weekly or monthly, on a monthly basis. Part of the platform is also that we have a Nayax Capital that enable him to really to ease up what you call extend the business. Working capital. He say working capital. Helping with the working capital. Are you taking credit risk on the working capital or no? No, not at all. It's a joint venture with the largest bank in Israel, Bank Hapoalim. Actually it's set aside as a risk under this company, and we have underwriters, and we have all the ability. The whole thing about this is integrated all of this to the system. It's integrated to our eShop that actually create ability of customers to do a eShop. Oh, I see. To buy it and immediately to get a merchant cash advance, and all of this flow of a value that we are bringing in is creating a lot of. Maybe you can also talk about some of the other capabilities in the platform. Tigapo, which I don't understand what that is. CoinBridge, Weezmo, which is, I think, marketing and- One by one. Tigapo is a company that we acquire. We're holding majority of this company. It's a FEC. It's like the casino, but for kids, as you. Oh. As we all know. For this, you have to have a very intimacy of relationship with the consumers because he's re-winning prizes, and you want him to stay more. All of this gaming as gaming arcades is being managed by Tigapo, which is a unique proposition. It's digitizing all the paperwork, all these things around the arcade gaming. It's creating. We have a testimonial of more than 50% increase in revenue. Wow. In this business. We are now... We're the only one doing this around the world. This is like a very old way of operation with paperwork and all the prices behind this, and the company has digitized this. The Weezmo is our data platform. It's a POS-driven data platform that enable any kind of POS to engage through a API or through SDK, so sort of a DLL to the printer. We're not being held back because of the POS. It's enabled customers to hold a better understanding on the marketing activity between the online and offline. Usually, you know, they're spending money on the online, but they don't see the result on the offline. This POS-driven data collection help them really to realize the spending and the ROI. There's Tigapo, there's Weezmo. The CoinBridge is a initiative of a startup that we initiate. Actually it's a patent that we wrote almost seven patent around this. This is a place where we're looking at the tier one coming back to the retail initiative that we're having. What we saw, what they're missing, to our understanding, is thYair ability to become a financial institution. Usually what the big retailers are doing, they're doing some kind of a joint venture, they're really issuing a what you call card. Mm-hmm. Debit card or credit card. Then on base of this, they're creating a what you call value, which is higher value spending money, not just in the premises but outside of the premises. What about the 85% or 90% of the consumers that are loyal consumers, but they are not really engaged with all this kind of onboarding card of new issued card? Loyalty system. Of loyalty system. They're really part of the loyalty system. The interest of the customer, whether it is Walmart, Tesco, whoever it is, in terms of the retail, is to delight the consumers to make sure that they are really using the cashback wherever they are. Not just in the 4 premises of, or the premises of the outlet, but outside, and then they come back, and they're making a transaction more often, and the basket is higher. What we did there, on top of the raise that we already know which is the network rail that are quite good. We initiate or issuing license with Mastercard that we have now in Israel, Europe, UK, and Discover in the U.S. This enable us to be an issuer for the retailers. How we're doing this is, we are asking the retailers, of course, with his agreement. Consumers are updating thYair app. Walmart app, Tesco app, Morrisons app, whatever it is, they already have thYair consumers. They're already using what you call engagement with thYair consumers. The update of this app is, enable a token into the app. The token is actually EMV token, empty token with card on file. The policy to spend the points or, whatever the digital asset that the customers want to spend is based on his policy. If I'm Walmart and I'm a consumer that are living in the U.S. and reaching out potentially, I don't know, to Israel, and Walmart want to delight me with the points that are already earned. Let's say I have 100 points of Walmart. They can allow me to spend the money on MCC code, let's call cafe, or MID code, one name that are based in Israel called maybe Aroma. Based on this, I can spend the money of my points, which is- Your digital value. Digital value. I can spend it outside of the rail. Imagine what is the surprise and. Delight. delight consumer that's saying, "Wow, look what I can do with my points." From point of view of customer of the retailers, of course, the rate of the points value, he can play with this. He can say, "Okay, it's a coffee, so I can do it maybe 25%, not 100%." For me as a consumer, just to have this kind of allowances with my points, I don't care. I don't know what to do with my points anyway. I can't really do a lot with my points. It's play a lot of what you call win-win-win for consumer point of view, for customer point of view, that creating a lot of value for the customers to repeat buying and increasing the basket. It's opened the door for huge market of just the digital assets, as we call it, not just the cash pick. It could be for crypto, it could be for a lot of other digital assets that need a solution that's taking the digital asset to fiat money. Mm-hmm. Mm-hmm. A Nayax account, I assume, is embedded banking. Is that what that is? Nayax account is the extended part. What we're looking into the future is the take rate, and the ability of us to extend the take rate and the margin by also providing, let's call it, a ledger account, because we already received the money. Right. This ledger account, he can spend the money. We can issue him account. He can spend the money from our account, and the money actually stays in Nayax account. Right. in a segregated account. Right. He can access it. Based off this, we can offer potentially partnership with insurance, with banks, with whoever it is in order to really gain more value from our perspective into the Nayax account. It's a lot going on, Yair. Yes. Let's talk about the competitive front. What are you seeing from your major competitors? Can you make any generalizations? You know, if you come back to Of the of this discussion. We see what we want to deliver, and we're less of looking about competitors. We see the value that we're trying to bring in. We're seeing the full solution that we're trying to build in. We're seeing it's working, that this model is working for us. For competitive landscape, it could be anyone that really compete against this. What we see is vendor that compete against what we're doing. Nobody's really doing on a global level- Full solution global. Full solution, a global solution, what we're doing. I think we are. I don't know. Potentially you know better than me regarding how many are really connecting to more than 45 acquirers, 50 acquirers around the globe in terms of card present. This is a, this is quite a heavy task, you know, to accept card present solution in New Zealand, in Australia, in Japan, all over Europe, different currency, but it's like to like, and then the U.S., Canada, LATAM, all. No. I'm not aware of anybody. and bringing this solution to the SMB market. No. We don't see anyone near, coming nearby this kind of. Particularly the SMB market. Yes, particularly in this SMB, yes. This is this endless game from our perspective. In the US, in terms of who are your primary competitors these days in the US? In unattended space, there are some players in the US, which is solely in the US. We're again, we're looking at this in the way that we're taking a lot of market share. We're growing quite fast. You know, what we're growing in customer base in 1 quarter is surpassing the 1 year of our competitors. It's really a testimony of what we're doing and how we're doing and how we're scaling our business. Who are you taking share from in the US? Everybody? You know, there are changes in the U.S. market, whether it is Crane and Cantaloupe and others. We are looking at the market that even the U.S. market is not really full to the full extent in terms of solution. I think the SMB market and the small market, nobody treat it like Nayax. There is still a lot of room to grow the business. The tier one customers, some of them really approach Nayax and move to Nayax. It's coming from competitors, yes. Yeah. No, I'm sure it is. What do you worry about in terms of the constraints on the business? You know, from 20 years of experience of this business, if I will not be, me and my partner be paranoid, you know, always paranoid, it will not work. We always worried about the execution and the speed of delivery. We think that if we not run quite fast and be under a pressure of delivery, we will not succeed. The growth rate that we're putting onto ourself and also to outside world, saying that 35% growth is a must-have from our perspective, in order to really to succeed and grow the business. If we not grow this pace, it will be something is wrong internally in the way that we're executing. Getting to $1 billion in revenue by 2028? As I think you've said, you're projecting, you know, 35% growth going forward, which is not trivial. I mean, that's fairly significant for the next 4 or 5 years. Yeah. What are the primary drivers of that growth? I mean, if you were to pick three things that you think will drive that growth more than anything else, what are they? I think first and foremost, the market is huge. The unattended by itself is EUR 120 billion. If you calculate what we are doing and all the competitors are doing, I think we are less than 20%. We have 80% of the market growth. Some people are skeptical, say, "Yes, but where are all this market?" This market is quite complex with more than 44 verticals. If you take the massage chair, if you take the laundromat, if you take kiddie rides and novelty machines coming in. I don't know, bike washers. There is so many different. Use cases. Use cases that coming to life, which are not served. They're actually accepting still accepting cash. We always try to remember, they're all under very nano merchant, like small merchants that are okay with the stay with cash if they can, right? Based on this, we see this as a very strong part of our future growth that will take us to, I don't know, 60% of the growth that. just penetrating unaddressed TAM, basically, which is the 80%. Yeah. If we have the 20,000 customers a year, and these customers will grow 4 times, these are the customers that are internally. Then we have the new customers coming in. Based off this, we believe that we'll have a very strong growth into the future. This is the major part of this because it is working for us quite significantly. The second part that we believe of the growth is the EV charger, the electrical vehicle charger. Again, there is a big tailwind coming in with government utility, whatever. It's already decided that we're moving to. It's global. It's global. It's global. This serve us in terms of this. The last thing is actually the novelty that we talked about, the ability of us to be a issuer for the customers and enable them to become really control their loyalty. Engagement is a big part of what we believe in into the future. The retail side, we see unattended is strong pillar, the EV and then the issuing side of the loyalty part for the customer base, tier one customer that we're having. It's very exciting, Yair. There's a lot going on, and the business continues to improve. We just now need to improve liquidity and help the stock price. That's what we're here for today. We'll make it happen. Yes. Thank you very much. Thank you very much. Bye. Thank you. Bye.